08 Aug 2012

How to Choose a Collection Agency

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Important factors you need to know before you choose your Collection Agency

  • Length of time in business
  • Size of the Agency
  • Financial stability
  • Collection experience (including seniority of Collectors)
  • Is Agency automated to include:
    1. On-line capability
    2. Training employees continually
    3. Pre-Collect systems
    4. Collection procedure for each client/account
    5. Do they have access to the Credit Bureau?
    6. What skiptracing procedures do they follow?
    7. Do they use computer systems with power dialing?
    8. Are their Collectors continually trained on new laws, etc.?
  • Check out rates!
  • Fee rates based on type/age and volume?

Notice and Be Aware!

Generally you find rates and fees are charged on a contingency basis – no collections, no charge. However, watch the firm that charges a low fee … They may not work your accounts in a proper manner and will collect fewer accounts. See what you are getting for your money.

Although you may pay a higher rate, the important factor is the Agency’s effectiveness and their net return to you.

The bottom line is: Choose the Agency which will handle your accounts in a professional manner while staying within FDCPA guidelines and sending your monthly reports stamped “Paid in Full”.